Search Legislation

Finance Act 2016

Status:

This is the original version (as it was originally enacted).

102Connected charities

(1)Two or more charities form a “charities unit” for a tax year (and are the “members” of that unit) if—

(a)they are connected with one another at the beginning of the tax year, and

(b)each of them is entitled to a levy allowance for the tax year.

(2)The members of a charities unit must determine what amount of levy allowance each of them is to be entitled to for the tax year (and the determination must comply with subsections (3) and (4)).

But see subsections (6) and (11).

(3)A member’s levy allowance for a tax year may be zero (but not a negative amount).

(4)The total amount of the levy allowances to which the members of a charities unit are entitled for a tax year must equal £15,000.

(5)A determination made under subsection (2) (with respect to a tax year) cannot afterwards be altered by the members concerned (but this does not prevent the correction of a failure to comply with subsection (4)).

(6)If subsection (8) applies—

(a)HMRC must determine in accordance with subsection (7) what amount of levy allowance each of the relevant members (see subsection (8)(a)) of the unit concerned is to be entitled to for the tax year, and

(b)accordingly subsection (2) is treated as never having applied in relation to that charities unit and that tax year.

(7)The determination is to be made by multiplying the amount of levy allowance set out in each relevant return (see subsection (8)(a)) by—

where T is the total of the amounts of levy allowance set out in the relevant returns.

The result is, in each case, the amount of the levy allowance to which the relevant member in question is entitled for the tax year (but amounts may be rounded up or down where appropriate provided that subsection (4) is complied with).

(8)This subsection applies if—

(a)HMRC is aware—

(i)that two or more members of a charities unit (“the relevant members”) have made apprenticeship levy returns (“the relevant returns”) on the basis mentioned in subsection (9), and

(ii)that those returns, together, imply that the total mentioned in subsection (4) is greater than £15,000,

(b)HMRC has notified the relevant members in writing that HMRC is considering taking action under subsection (6), and

(c)the remedial action specified in the notice has not been taken within the period specified in the notice.

(9)The basis in question is that the member making the return is entitled to a levy allowance (whether or not of zero) for the tax year concerned.

(10)If any member of the charities unit mentioned in subsection (8)(a) is not a relevant member, that member is entitled to a levy allowance of zero for the tax year.

(11)If subsection (13) applies—

(a)HMRC must determine in accordance with subsection (12) what amount of levy allowance each of the members of the unit concerned is to be entitled to for the tax year, and

(b)accordingly subsection (2) is treated as never having applied in relation to that charities unit and that tax year.

(12)Each member of the unit is to be entitled to a levy allowance for the tax year equal to—

where N is the number of the members of the charities unit for the tax year.

Amounts determined in accordance with the formula in this subsection may be rounded up or down where appropriate provided that subsection (4) is complied with.

(13)This subsection applies if—

(a)the total amount paid by the members of a charities unit in respect of apprenticeship levy for a tax year or any period in a tax year is less than the total of the amounts due and payable by them for the tax year or other period concerned,

(b)either the members of the unit have made no apprenticeship levy returns for any period in the tax year concerned or the returns that have been made do not contain sufficient information to enable HMRC to determine how the whole of the £15,000 mentioned in subsection (4) is to be used by the members of the unit for the tax year,

(c)HMRC has notified all the members of the unit in writing that HMRC is considering taking action under subsection (11), and

(d)the remedial action specified in the notice has not been taken within the period specified in the notice.

(14)Subsection (4) is to be taken into account in calculating the total of the amounts due and payable as mentioned in subsection (13)(a).

(15)The Commissioners may by regulations provide that in circumstances specified in the regulations the members of a charities unit may alter a determination made under subsection (2) (despite subsection (5)).

(16)In this section “apprenticeship levy return” means a return under regulations under section 105(4).

(17)In this Part “charity” means—

(a)a charity within the meaning of Part 1 of Schedule 6 to FA 2010;

(b)the Trustees of the National Heritage Memorial Fund;

(c)the Historic Buildings and Monuments Commission for England;

(d)a registered club within the meaning of Chapter 9 of Part 13 of CTA 2010 (community amateur sports clubs).

(18)Subsection (17) is subject to section 118(5).

(19)See sections 118 and 119 for provision about the meaning of “connected” in subsection (1).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open the Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources